Openness And The EU

Does Candidacy to the EU Increase a Nation’s Trade Openness?By: Constantine Petallides

What is Trade Openness?

• (Imports + Exports)/GDP

• More Business = Stronger and More Stable Economy

Why Does the EU Care?

• Copenhagen Criteria: Existence of a functioning market economy and the capacity to cope with competitive pressure and market forces within the Union.1

• $$$$$$$$ $$$$$$$$ $$$$$$$$– Fewer tariff walls and “Four Freedoms”

• Everyone Wins!

1Europa – Glossary – Accession Criteria (Copenhagen Criteria), http://europa.eu/scadplus/glossary/accession_criteria_copenhague_en.htm

Methodology

• Penn World Tables used to generate dataset

• Observe other variables in relation to Trade Openness

The Data

countrycountry isocode year PPP rgdpl rgdpch openk Candidate

Average Openness Candidate Member

Average Openness Mamber

Austria AUT 19500.7249498

155659.486

2785573.3443

81 17.697967 064.813305

37 088.339694

46

Austria AUT 19510.8342921

456067.280

2735977.4809

5217.919626

44 064.813305

37 088.339694

46

Austria AUT 19520.9180965

125961.272

5575866.7694

8816.537258

46 064.813305

37 088.339694

46

Austria AUT 19530.9123809

116074.063

4475973.6445

2219.122231

71 064.813305

37 088.339694

46

Austria AUT 19540.9343898

226653.068

9666560.4646

8722.278403

16 064.813305

37 088.339694

46

Austria AUT 19550.9506676

577458.980

3267416.1792

2923.223757

41 064.813305

37 088.339694

46

Austria AUT 19560.9700294

887668.400

427630.0999

7425.732026

75 064.813305

37 088.339694

46

Austria AUT 19570.9699949

758157.420

0428112.1028

1227.234158

19 064.813305

37 088.339694

46

Austria AUT 19580.9366666

418460.831

8838414.1415

4826.027051

21 064.813305

37 088.339694

46

Austria AUT 19590.9409560

978707.753

2748668.3172

9728.269505

54 064.813305

37 088.339694

46

Austria AUT 19600.9310126

49811.916

8969797.5714

0628.446362

02 064.813305

37 088.339694

46

Note: All tables and graphs are author created based on this dataset

The Data (Post-Mental Breakdown)

Year EU Status GDP Trade Openess

91 Unaffiliated 20755.78568 41.14312089

92 Candidate 19551.72211 45.59469788

93 Candidate 18892.2547 51.08341727

94 Candidate 19598.61584 55.54894615

95 Member 20739.58135 56.5274974

96 Member 21088.96206 58.86920368

97 Member 22699.64664 61.40788752

98 Member 24185.8625 62.42602938

99 Member 25091.55467 64.73418808

00 Member 26401.79381 71.72706411

01 Member 27024.66205 70.98454394

02 Member 27299.83326 72.00204736

03 Member 27750.5908 71.02776323

04 Member 28766.45285 73.98360549

05 Member 29761.46199 78.06943861

06 Member 31045.56394 81.78941102

07 Member 32486.15469 81.53146954

Case Example: Finland

Year EU Status GDP Trade Openess

98 Unaffiliated 6418.31986 41.37731082

99 Candidate 6093.582525 40.70670457

00 Candidate 6428.208431 46.48146355

01 Candidate 5708.507389 46.06522048

02 Candidate 6017.591012 48.62820636

03 Candidate 6253.601557 55.90605291

04 Candidate 6737.092957 60.6695371

05 Candidate 7132.831249 62.20189919

06 Candidate 7457.442694 63.17499061

07 Candidate 7737.858087 65.32816591

Unobservable Factors: Turkey

Further Research / Difficulties

• Statistics Training

• More Advanced Confirmation of Relationship